Raising the retirement age is the labour market ready for active ageing: evidence from EB and Eurofound research
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1 Raising the retirement age is the labour market ready for active ageing: evidence from EB and Eurofound research Robert Anderson, EUROFOUND, Dublin Reforming pension systems in Europe and Central Asia European Commission World Bank conference Brussels, June /06/2012 1
2 European Foundation research on working longer : Age barriers in employment : Employment initiatives for an ageing workforce Database of good practice company case studies Report on developments over last decade 2007: Working conditions of an ageing workforce 2010: Older workers and company restructuring in recession European Working Conditions Survey 2011: Income from work after retirement Company initiatives for workers with care responsibilities Special Eurobarometer 378: Active Ageing, January /06/2012 2
3 80,0 70,0 Older workers employment rate, , years 60,0 50,0 40,0 30, ,0 10,0 0,0 Source: compiled from on-line Eurostat database (1 June 2011), LFS data
4 Projected change in the WAP and the share of older people (55-64) in the WAP 29/06/2012 4
5 How can companies respond: Measures to promote work ability of older workers Health promotion Work design and organisation Work ability Training and skills developments (Ilmarinen and Tempel, 2002) HR management and corporate culture 29/06/2012 5
6 Company-level developments in measures mid-90s to mid-00s Increase over time in the frequency, diversity and complexity of approaches to age management but still not common and big country differences Most common measures are in training and development followed by flexible working Tendency for measures to promote health and well-being to be reported more, and specific measures for recruitment or redeployment less Targeting to skilled manual workers still prominent but more attention to professional and managerial staff and more attention to all age groups Little specific attention to low-skilled, or to gender issues 29/06/2012 6
7 During the financial crisis, company age management pays increasing attention to: promoting 'employability' (skills), including specifically for older workers intergenerational knowledge transfer, involvement in training younger workers flexible working arrangements, with more partial retirement schemes 29/06/2012 7
8 Portugal Greece France Hungary Croatia Spain Poland Bulgaria Luxembourg Slovakia Malta Czech Republic Lithuania Romania Austria Belgium Latvia EU27 Estonia Italy Cyprus Finland Sweden United Kingdom Denmark Ireland Germany Netherlands 80% 70% Workers thinking they will be able to do their current jobs at the age of 60 (Eurofound s EWCS, 2010) 60% 50% 40% 30% 20% 10% 0%
9 29/06/2012 Source: Special Eurobarometer 378 9
10 Source: Special Eurobarometer /06/
11 Proportion who believe people should be able to work past retirement age Source: Special Eurobarometer /06/
12 Would you like to continue working after the age when you are entitled to a pension? Yes No Don't know Source: Special Eurobarometer 378, /06/
13 Would you like to continue working after the age when you are entitled to a pension? Source: Special Eurobarometer 378, /06/
14 Employment rates in the EU27 by age group and gender, ,0 80,0 70,0 60,0 50,0 40,0 Males Females 30,0 20,0 10,0 0, Source: compiled from on-line Eurostat database (1 June 2011), LFS data
15 Romania Portugal Estonia Cyprus UK Ireland Sweden Denmark Latvia Slovenia Netherlands Finland Lithuania EU27 Austria EU15 Poland Czech Republic Germany Greece Italy Luxembourg Bulgaria Malta Spain Hungary France Belgium Slovakia An EU27-level overview 25,0 20,0 Reported employment rates of years old differ largely across the EU27 countries, but: they are significant and on the increase 15,0 10,0 2006Q1 2011Q1 5,0 0,0
16 Working after 65 & the work they do % employed 2006Q1 2011Q1 65 and over Mainly relatively young retirees % employed, EU27 (ISCED education codes) Level Level Level % employed, 65 to 69 year olds 2006Q1 2011Q1 EU EU27 (female) EU Part-time employment (% of employed) 2006Q1 2011Q1 65 and over to Mainly highly educated, but more medium as well Mainly male, but the gap is decreasing No EU15-EU12 distinction in terms of uptake anymore Mainly doing part-time work, relatively often as self-employed Note: different clusters! E.g. male fishermen in Portugal who mostly work because they need to, and female entrepreneurs in UK and academics in Sweden who work because they want to.
17 Why have people 65+ been in employment? The drivers of work after age 65 a) Need Strength of each driver s impact depends on individual & regional situations. c) Opportunities (enough accessible, suitable jobs) WORK? b) Interest
18 In the EU27, around 1/5 works purely because of financial need Would enjoy your current paid job, even if you don t need the money** (2010) Agree 47% 51% 64% Disagree 34% 33% 21% Source: Eurofound analysis of ESS
19 Conclusions and policy pointers Active ageing strategies should be embedded in a comprehensive policy for an ageing population in all Member States, with particular attention to NMS The older age population is very diverse in health, income, education, experience and preferences strategies must reflect this, especially growing deprivation Policies must consider all ages working, learning and caring over the life course with more attention to gender and reconciliation of work with care Financial crisis reinforces challenges for both pensions/incomes and retirement practices (including phased retirement and work after 65 years) 29/06/
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